The Restricting Factors and the Solution to Rural Financial Product Innovation

The innovation of rural financial products and services are significant to improve the income of farmers and change the backward situation of rural area. With a discussion of the rural financial system, the paper points out the dominant role that the rural credit cooperatives play in the financial construction in rural areas, and the dualistic structure characteristics of rural finance system. Based on the current situation, the paper analyzes not only the achievements and experience of financial innovation in rural areas, and also the inadequacy to constrain the development of rural financial products and services. Finally, the paper offers proposals to improve the innovation of rural financial products and services from four aspects such as perfecting the fiscal policy, improving the supervision system, strengthening the cooperation of the same industry and setting up the innovative consciousness.